In a further encouraging sign of improvement in the jobs market, the Labor Department revised April and May jobs numbers higher, saying the combined gains in those months were 70,000 higher than previously estimated.

In June, the private sector continued to drive job growth in the world's largest economy, adding 202,000 positions.

Government shed 7,000 jobs, 5,000 of them at the federal level, in part reflecting the ongoing sequester spending cuts that began on March 1.

The most robust job growth - 75,000 new jobs - was in the leisure and hospitality sector, which has been making a strong comeback over the past 12 months amid a modest economic expansion.

In that sector, 5,200 jobs were added in food services and drinking places, the department said.

Other leading gains were in professional and business services, up 53,000 jobs, retail trade (37,000), health care (20,000) and financial activities (17,000).

The number of people unemployed was 11.8 million, up a slight 17,000 from May.

In the private sector, the average work week remained unchanged in June at 34.5 hours, while the average hourly earnings rose 10 cents, to $24.01.

Over the past 12 months, it has increased by 51 cents, or 2.2 per cent.

Jobs impact on the Australian dollar

Currency analysts had said traders will be ready to sell the Australian dollar if a key reading on US unemployment was proved better than expected.

The Australian dollar is down 12 per cent against the greenback since the start of the year as an improving US economy makes the US dollar more attractive.

The job figures provide a gauge of US economic strength and cause traders to bet when stimulus will dry up.

Senior analyst at Thomson Reuters, John Noonan, says the US dollar is poised to move higher.

"Macro funds have been buying the US dollar in anticipation the US economy is improving enough for the US Fed to take it off life support," he said.

In contrast, the Australian dollar is out of favour as interest rates fall.